Answer:
cash 1,470
sales discount 30
return goods 1,100
sales revenue 2,600
to record payment received from Morton Company
Explanation:
on sale:
account receivable 2,600
sales revenue 2,600
we analize the commercial terms:
2/7 within the first 7 days, paying the invoice generates a 2% discounts
n/30 after that, until 30 days pays the nominal amount
balance at payment date:
sales for 2,600
returned goods: (1,100)
balance 1,500
discount 1,500 x 2% = 30
journal entry:
cash 1,470 (1,500 nominal - 30 discount)
sales discount 30
return goods 1,100
sales revenue 2,600
